4 acct questions need help, easy 11111

Brads's Towing Company's cost formula for its vehicle operating cost is $1,320 per month plus $225 per day the vehicle is used. For the month of July, the company planned for activity of 14 days of vehicle use, but the actual level of activity was 19 days. The actual vehicle operating cost for the month was $5,200. The spending variance for vehicle operating cost in July would be closest to:

	$730 U
	$395 F
	$730 F
	$395 U

Hank Corporation makes and sells a single product. The company uses units as the measure of activity in its flexible budgets. During January, the company budgeted for 6,000 units, but its actual level of activity was 5,950 units. The company has provided the following data concerning the formulas to be used in its budgeting:

	Fixed element per month	Variable element per unit
Revenue	?	$25.20
Direct labor	$0	$3.90
Direct material	0	8.90
Manufacturing overhead	30,000	1.10
Selling and administrative expenses	16,700	0.80
Total expenses	$46,700	$14.70

The total selling and administrative expenses in the planning budget for January would be closest to:

	$21,500
	$16,700
	$21,460
	$11,900

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When the actual cost incurred is greater than what the cost should have been as stated in the flexible budget, the variance is:

	cannot be labeled as favorable or unfavorable without additional information.
	labeled as favorable.
	an activity variance.
	labeled as unfavorable.

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A hotel in New Orleans bases its budgets on occupancy-days. (An occupancy day represents a room rented out for one day.) The hotel's static budget for July appears below:

Budgeted number of occupancy-days	3,800
Budgeted variable costs:
Supplies (@$3.60 per occupancy-day)	$13,680
Laundry (@$9.60 per occupancy-day)	36,480
Total variable cost	50,160
Budgeted fixed costs:
Wages and salaries	17,480
Occupancy costs	57,000
Total fixed cost	74,480
Total cost	$124,640

The total variable cost at the activity level of 5,450 occupancy-days per month should be:

	$67,640
	$159,140
	$50,160
	$71,940